Unit 4 [AC553: Development and Evaluation of Internal Controls]
Project Details and Rubric
Unit 4 Project:
Milestone #2: You will expand your research on your chosen company based on the topics covered
thus far: payroll and collections/cash control. Your milestone update should only contain this week’s
topic.
Please note, the Final Project is due in Unit 6.
Milestone #2 should be 4–6 pages in length.
Format: Must include these headers
1. Title page
2. Introduction: Discuss what aspect of the control system of your study company you
will be addressing in the milestone. (e.g., overview of collections/cash handling and payroll at
the company).
3. Controls: Provide a summary of the basic operations of how controls are accomplished
at the organization for collections/cash handling and payroll.
4. Best Practices: Summarize the best practices for controls for the specific topic (e.g.,
collections/cash handling and payroll) and include any insight from external research of how
effective or efficient these best practices might be.
5. Strengths & Weaknesses: Detail the effectiveness and efficiency of your study
company’s control systems as compared to best practices identified, above and note any
weaknesses or incongruities.
6. Assessment & Recommendations: Conclude with an assessment of your study
company’s overall internal control system and any recommendations you might have.
7. Reference page
Access the Final Project template formatted in APA.
Directions for Submitting your Project
Compose your Project in a Microsoft Word document and save it as Username-AC553 ProjectUnit#.doc (Example: TAllen-AC553 Project Unit 4.doc). Submit your file by selecting the Unit 4: Project
Dropbox by the end of Unit 4.
Grade
Content, Focus, Use of
Text/Research, and Organization
Analysis and Critical
Thinking
Writing Style, Grammar, and
APA Format
Page 1 of 5
Unit 4 [AC553: Development and Evaluation of Internal Controls]
%
50%
30%
20%
90100%
Response successfully answers the
Assignment question(s); thoroughly
uses the text and other literature.
Includes a strong thesis statement,
introduction, and conclusion. The
main points of the paper are
developed clearly. All arguments
are supported well (no errors in
logic) using outside sources as
assigned.
Response exhibits
strong higher-order
critical thinking and
analysis (e.g.,
evaluation). Paper
shows original thought.
Grammatical skills are strong
with typically less than one error
per page. Correct use of APA
when assigned.
Sources are primarily academic
journals, with thoughtful use of web
sources. References are applied
substantively to the paper topic.
Skillfully addresses
counterarguments and does not
ignore data contradicting its claim.
Refers to sources both in-text and in
the reference page.
80-89%
Analysis includes
proper classifications,
explanations,
comparisons, and
inferences.
Critical thinking
includes appropriate
judgments,
conclusions, and
assessment based on
evaluation and
synthesis of
information.
Response answers the Assignment
question(s) with only minor
digressions; sufficiently uses the
text and other literature. Provides a
good thesis statement, introduction,
and conclusion that require some
revision but that form a good basis.
Response generally
exhibits higher-order
critical thinking and
analysis (e.g.,
evaluation). Paper
shows some original
thought.
Develops the main points clearly.
Analysis includes
adequate
classifications,
explanations,
comparisons, and
inferences.
Supports most arguments
concretely (no logical errors) using
outside sources as assigned.
Some sources are non-academic
with over reliance on web sources.
References not always clearly tied
to development of ideas. Does not
ignore data contradicting its claim,
Critical thinking
includes adequate
judgments,
conclusions and
Appropriate to the Assignment,
fresh (interesting to read),
accurate, (no far-fetched,
unsupported comments),
precise (say what you mean),
and concise (not wordy).
Assignment is in 12-point font.
Narrative sections are
doublespaced. Assignment is
free of serious errors; grammar,
punctuation, and spelling help to
clarify the meaning by following
accepted conventions.
Internally, each section has
good organization. Transitions
found between and within
sections are mostly clear and
effective. Generally appropriate
to the Assignment, accurate (no
far-fetched, unsupported
claims), precise, and concise.
Includes a title page and
reference page.
Assignment is in 12-point font.
Assignment contains some
generally minor grammatical
and punctuation errors. Few
misspellings. Citations
generally follow APA guidelines
(perhaps one or two minor
Page 2 of 5
Unit 4 [AC553: Development and Evaluation of Internal Controls]
70-79%
though the refutation may need
additional support. Refers to outside
sources in the text and reference
page.
assessment based on
evaluation and
synthesis of
information.
errors).
Response answers the
Assignment(s) with some
digression; sufficiently uses the text
and other literature. Provides a
thesis statement that needs
revision. The introduction and
conclusion do not set up or close
the paper very effectively. Shows
too little original thought (strings of
citations that are not developed to
support the thesis).
Response exhibits
limited higher-order
critical thinking and
analysis (e.g.,
application of
information).
Sentences are occasionally
wordy or ambiguous; tone is too
informal. Grammatical skills are
adequate with no more than 2–
3 errors per page. The paper is
not well organized. Sections
lack transitions, and several
sentences may be monotonous
or confusing. The overall
structure of the Assignment is
not effective. Appropriate in
places, but elsewhere vague
writing interferes with the
development and clarity of the
main points. Numerous
grammatical and punctuation
errors. Misspellings are more
frequent, but they are the sort
spell checkers do not catch,
such as “effect/affect.” An
attempt at APA citation was
made, but there are multiple
errors larger than a misplaced
period. Narrative sections are
not double-spaced.
Main points are adequately defined
in only some areas of the paper;
points may be over-emphasized or
repeated. Some arguments are
supported with outside research,
but others may not be. Relies too
heavily on personal experience or
one source. The paper does not
meet the source requirements.
Some obvious counter-arguments
are ignored or not well refuted.
Analysis includes
limited classifications,
explanations,
comparisons, and
inferences.
Critical thinking
includes limited
judgments,
conclusions, and
assessment based on
evaluation and
synthesis of
information.
60-69%
Response answers the Assignment
question(s) but digresses
significantly; insufficiently uses the
text and other literature.
Response exhibits
simplistic or reductive
thinking and analysis
but does demonstrate
comprehension.
Sentences are generally wordy
and/or ambiguous; tone is too
informal. Grammatical skills are
inadequate, clarity and meaning
are impaired, typically 3–5
errors per page.
Inadequate use of APA format
0-59%
Response insufficiently answers the
Assignment question(s);
insufficiently uses the text and other
literature.
Response exhibits
simplistic or reductive
thinking and analysis
and demonstrates
limited knowledge on
the subject matter.
Sentences unclear enough to
impair meaning; tone is
inappropriate and/or
inconsistent. Grammatical skills
are incompetent for college
level; typically 6 or more errors
Page 3 of 5
Unit 4 [AC553: Development and Evaluation of Internal Controls]
per page. Unacceptable use of
APA format.
Page 4 of 5
Unit 4 [AC553: Development and Evaluation of Internal Controls]
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Running Head: COMPANY ANALYSIS
1
Company Analysis
AC553 Development and Evaluation of Internal Controls
Marshalee Spence
Kaplan University
January 30, 2018
COMPANY ANALYSIS
2
Company Overview
In this paper, Apple Inc is under focus. Apple Inc is a multinational corporation situated
in California, United States. The company operates in telecommunication industry which is
highly competitive. The company design and produce Smartphones, computers, and
entertainment media and application. After it was started in 1977, the company has registered a
significant improvement in gross profit and sales volume. The company has continued to win a
large market share as compared to some of its rifle competitors like Sony and Samsung. The
huge market share of Apple Inc can be attributed to its quality and unique products which are
tailored to satisfy the specific needs of the customers. As part of globalization, the company has
opened up a new market outlet in various part of the world.
Apple Inc is arguably the best and most successful electronics company in the world.
Even though the pricing of the company is higher as compared to its rifles such as Sony and
Samsung, the high quality of the products sold by the company attracts so many customers
(Lockamy, 2017). The Apple Inc current profitability ratios can attest the fact that the company
is growing by a huge margin. In the recent years, the company has registered a stellar sales
growth. This increase in sales can be linked to an intensive marketing strategy that has been
employed by the company to market its products.
Financial Overview
For the fiscal year which ended 30th September 2017, the revenue of the company was
$229.23 Billion; this represents 6 percent increased as compared to same period in 2016. The Net
Income also increased by 6 percent to $48.35B. The operating segment of the United States
registered an increase in revenue of 12 percent to $96.6B. The operating segment of Europe
COMPANY ANALYSIS
3
registered an increase of 10 percent to $54.94B. Other foreign segments also registered an
increase of 9 percent to $100.13 billion (Lockamy, 2017). The general increase in revenue in all
the segments of the company can be attributed to the introduction of iPhone 8 which fetched a
large market demand.
Earnings per diluted share increased from $1.67 IN 2016 to $2.07 in the year ended 2017.
The gross margin of the company also declines from 38.51 percent in 2016 to 37.9 percent in
2017. The operative expenses rose to $6.811 in 2017 from $6.052 in 2016. The increase in the
operating expenses can be attributed to the increase in advertisement expenses incurred by the
company to market its latest innovative products (Lockamy, 2017). The introduction of iPhone 8
contributed to an increase in iPhone unit sales from 2% in 2016 to 3% in 2016. The service
revenue registered an increase by 34 Percent and other products revenue increased by 36 percent.
The contribution of iPhone products was quite immense as compared to iPads products.
In the financial year which ended 2017, the Apple sold 10.326 million in the 4th quarter as
compared to 11.427 million in the 3th quarter. With periodic improvements to its iPhone
products and constant expansion of the Apple ecosystem products, Apple has kept the growth of
the iPhone products constant (Lockamy, 2017). As of September 2017, the average five-year
growth of sales was 29.08 percent. This was significantly high as compared to the industry
average. In the first quarter 2017, the quarter sales of the iPhone products reached 77.47 million
units. This magnificent improvement in the number of units sold can be attributed to the huge
demand for the iPhone 8 products in 2017.
The ability of the company to maintain the premium image of the iPhone products among
the mass-market consumers has contributed to immense improvements in sales power. In
COMPANY ANALYSIS
4
addition, the good brand image of the iPhone products has enabled the company to have
sustainable profits (Chen et al, 2017). Benefiting from magnificent sales growth plus healthy
profit margins, the yearly earnings of the company was 50 percent on a per-share basis for the
last 12 months ending September 2017. Therefore, the increase in sales growth rate portrays that
the company is winning a large market share as compared to its rifle companies like Samsung
and Sony.
The stock prices of Apple have gained over time as supported by growth of earnings. The
growth of stock prices was as a result of anticipated stabilization of Apple's products in the
market. The growing high level of investors' confidence towards the company has made most of
the investors to prefer to invest in the company's stock (Warren & Jones, 2018). It is also
important to understand that the stable political environment after the last election was a boost to
the growth of the company's earnings. The magnificent investment by the company in innovative
ideas is one of the reasons why the company is registering a positive growth in financial
portfolios.
The sales of Mac products have also increased in the last quarter. The company sold
approximately 5.386 million Macs in the 4th quarter of 2017 as compared to 4.292 million Macs
sold in the 3th quarter of 2017, and 4.886 million sold in the year-ago quarter. That is up 25
percent quarter-to-quarter analysis, and up 10 percent year-to-year (Warren & Jones, 2018). Out
of the sale of Macs products, the company has registered revenue of $7.170 billion. It is evident
from this analysis that Macs Products contributed hugely to the growth of the company. The
company should leverage on the growing demand for Macs products in the market in order to
boost their profitability index.
COMPANY ANALYSIS
5
In the Q1 2018, the company predicts that the revenue will be between $84 billion and
$87 billion. The expected increase in revenue will be contributed by the increasing demand of
iPhone products in the world. In order to realize the projected revenue, the company is planning
to engage in the intensive marketing of its products on social media platforms and other
marketing platforms (Warren & Jones, 2018). Apple Inc also projects that gross margin will be
between 38% and 38.5 %. The expected improvement in projected gross margin is as a result of
an increase in the projected sales volume.
In addition, the projected operating expenses are projected to be between $7.65 billion
and $7.75 billion (Duchin et al, 2017). This projection portrays that the company has a lot of
confidence in the launch of iPhone X and iPhone 8 plus. Tim Cook, CEO of the company, in one
of the latest press conference, argues that the future of the company is lucrative this is because
the new innovative products are fetching large market demand.
Conclusion
In conclusion, the financial analysis of the company portrays that it is improving with
time. The financial ratios analysis indicates that the company is winning a large market share as
compared to its rifle competitors such as Sony and company. Benefiting from the huge demand
for its innovative products such iPhone 8 and iPhone X, the company is likely to register a
magnificent growth in the future.
COMPANY ANALYSIS
6
References
Chen, P., Karabarbounis, L., & Neiman, B. (2017). The global rise of corporate saving. Journal
of Monetary Economics, 89, 1-19.
Duchin, R., Gilbert, T., Harford, J., & Hrdlicka, C. (2017). Precautionary savings with risky
assets: When cash is not cash. The Journal of Finance, 72(2), 793-852.
Lockamy III, A. (2017, July). An examination of external risk factors in Apple Inc.’s supply
chain. In Supply Chain Forum: An International Journal (Vol. 18, No. 3, pp. 177-188).
Taylor & Francis.
Warren, C. S., & Jones, J. (2018). Corporate financial accounting. Cengage Learning.
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